ATMs (automated teller machines) are common in today's financial infrastructure. Typically, a customer utilizes an ATM to withdraw funds from his or her bank account, deposit funds into her account, or secure information regarding the status of her account, for example. The customer inserts her card into the ATM, and the ATM reads the card so as to secure information from the card. The ATM then communicates with the customer's bank so as to authorize and perform the requested action.
ATM use is susceptible, in some situations, to fraud. For example, a fraudster may install a device upon the ATM so as to read a customer's magnetic stripe off the customer's credit card. Further, a fraudster may install a video camera so as to observe the customer's PIN code. As a result, the fraudster will then be in possession of key pieces of information, which may then be used to perform fraudulent transactions. In particular, the fraudster may then be able to manufacture a credit card that is operationally identical to the original customer's credit card. In withdrawing cash, the fraudster may only be limited by the daily limit associated with the account. The fraudulent use may continue until either the customer or the bank identifies the fraud and takes measures to stop it.
Current practices to identify and prevent ATM fraud are deficient allowing substantial loss. Fraud is being performed against hundreds of cards a day. The systems and methods of the invention address these deficiencies of known techniques.